Recognise Bank has completed two bridging loans totalling £5.35 million against owner-operated hotels in West Sussex and Buckinghamshire.
The two 18-month facilities, which were completed at a combined 70% LTV, have been used to refinance existing borrowing and release additional capital.
The deals were introduced by Harry Baker, director at Aura Capital, and completed within 30 days of the initial broker enquiry.
The borrower has more than 25 years’ experience in the hospitality sector and owns an established portfolio of trading hotel assets.
One of the hotels has received a positive pre-application response for a substantial redevelopment. The plans could see the property expand from 52 to about 104 bedrooms, as well as providing enhanced conferencing and wedding facilities.
Recognise worked with Aura Capital and the borrower on the two facilities, assessing the trading assets, the operator’s experience and plans for the wider portfolio.
Tom Ravenscroft (pictured), lending manager at Recognise Bank, says: “Completing two facilities of this size within a month required us to maintain a clear focus on the borrower’s requirements and work closely with Harry Baker, Junayd Iqbal and the wider team throughout the process.
“The borrower has significant experience in the hospitality sector and an established portfolio of trading hotels, so we were able to take a considered view of the assets and the wider strategy.
“This is a good example of how we can provide decisiveness, clarity and certainty when an experienced operator needs to refinance and raise capital within a defined timeframe.”
Baker adds: “Recognise Bank understood the transaction from the outset and worked closely with us to get both facilities completed within 30 days of our initial enquiry.
“The team quickly developed a clear understanding of the client’s financial position, trading history and the strength of the wider group. This enabled Recognise to take a pragmatic view of the transaction and provide the level of leverage the client required.
“With two operational hotel assets involved, it was important to work with a lender and legal team that could properly assess the borrower’s experience, the underlying trading businesses and the plans for the wider portfolio.
“Tom Ravenscroft and Miriam McComie at Recognise Bank remained responsive and solution-focused throughout.
“Their collaborative approach was instrumental in completing both facilities within the required timeframe.”
